Business Daily America's affordability question
5 snips
Jan 20, 2026 
Join Samira Hussain, a North America business correspondent, as she breaks down the intricacies of the consumer price index and current inflation rates. Data science professor Liberty Vittart discusses long-term wage trends and ongoing affordability struggles in the face of rising costs. Oren Kass, an economist and founder of American Compass, shares insights into energy policy and the disconnect between economic growth and household financial pressure. Together, they unravel why many Americans still feel the pinch despite a seemingly booming economy.
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CPI Hides Big Item Differences
- Inflation is measured by the consumer price index, a weighted basket of goods and services.
- Aggregate inflation (around 2.7%) hides large differences across items like food and energy.
Real Wages Up But Sentiment Down
- Real wages measure purchasing power after inflation and have risen over the past decade.
- Despite rising real wages, many surveys show people still feel worse off.
Shoppers Say Groceries Have Doubled
- Shoppers in Atlanta report grocery bills have doubled and meat and eggs have risen sharply.
- One shopper says sometimes it's cheaper to eat out than to buy groceries.